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RBNZ to Cut Rates

The team at BNZ research, sees easing potential by the Reserve Bank of New Zealand ahead in September, but also cautions against a possible upside move towards 0.70 in NZD/USD if the short positions in the pair unwind, FXStreet reported. The RBNZ surprised many by cutting its policy rate at the June meeting, by 25bps to 3.25%. It cited concerns about the large blow to national income, which is expected as a result of the plunge in dairy prices. It also emphasized that policy easing was necessary to return headline inflation back to the 2.0% midpoint target.